2-year status quo at Nenaco, ATS likely

NEGROS Navigation Co (Nenaco) chairman Sulficio Tagud, Jr is keen on keeping the status quo at Nenaco and Aboitiz Transport System (ATS) for the next two years, according to Nenaco sources.

Nenaco last week offered to buy ATS from the Aboitiz Group for about P4.5 billion. The deal will be completed next month.

"There will be no significant changes in the structure of the company aside of course from the management level," the source said.

A status quo may be a particularly attractive strategy for now especially in light of claims that MCC Transport – a joint venture between ATS and Maersk and part of the buyout – has been accused of skirting the cabotage law through the use of special permits. A status quo may help distance Nenaco from the controversy.

Critics claim there is no shortage in local bottoms, negating the need for MCC Transport to operate foreign-flag vessels in the local trade.